Last month, the Central Bank of Nigeria said that dealing with crypto is prohibited. However, this kind of statement applied only to financial institutions.
According to a report published by the local newspaper Today Ng, the central bank did nothing but draw a line between crypto-related banking activities and the use of cryptocurrencies by the population.
In other words, traders in Nigeria have the freedom to trade with crypto as long as they are not used for obviously illegal purposes.
Crypto is not prohibited and can be traded in Nigeria
Bank’s Vice President Adamu Lamtek at the Finance Correspondents and Business Editors seminar; Lamtek explained:
CBN has no restrictions on the use of Cryptocurrencies and we do not deter people from trading. What we just did was ban transactions related to Cryptocurrencies in the banking industry.
The statement came in response to a wave of tension and speculation in the country following a letter by the Central Bank of Nigeria instructing all banking institutions in the country to close any accounts used by those who operate or use crypto exchange services.
Africa soars in terms of Crypto adoption
BCN’s announcement ends a period of uncertainty in African markets. Nigeria is the country with the highest Bitcoin trading volume in Sub-Saharan Africa, nearly tripling the volume of its closest competitor.
Nigeria made an approximate $ 8.8 million move in Bitcoin last week, according to data from metrics site Useful Tulips. To put the number into context, this amount is more than the total trade volume of the entire continent.